Dangote Cement’s Q1profit hits N74.7b

Dangote Cement has announced a gross profit of N74.7 billion for the three months ended March 31, 2015, indicating an increase of 10.5 per cent over N67.63 billion recorded in the same period last year.

According to the firm’s unaudited results for first quarter of this year, revenues rose by 10.8 to N114.7billion compared to N103.57 billion in the corresponding period last year. The improvement in the results was buoyed by contributions from non-Nigerian factories

Net profit was up 44.1 per cent to N 68.6 billion in contrast to N47.62 billion last year while earnings per share grew by 45.7 per cent to N4.09.

Group cement sales volumes was up by 3.4 per cent to 3.8 million tonnes driven by contributions from South Africa, Senegal, Cameroon and new lines in Nigeria. The margins from Nigeria increased by new pricing, improved gas supply and more use of coal. Dangote Cement Plants are now operational in Zambia and Ethiopia. The new plants are expected to impact positively on the financials of the cement giants.

Speaking on the first quarter results, Chief Executive officer, Dangote Cement, Mr. Onne van der Weijde, said: “Our African projects are now beginning to deliver revenue growth for the Group and even at this early stage we are seeing good potential in all the countries into which we are expanding.

“Senegal has made an excellent start, Cameroon is poised for a strong entry into an exciting growth market and Sephaku Cement is clearly shaking up the South African market as the first new entrant in many years.”